Unemployment continues to plague our economy. In spite of constant
claims that we have just turned the corner into recovery, the jobs
reports remain grim with no real signs of improvement. While Keynesian economists and big government apologists scratch their heads about
persistent unemployment in spite of unprecedented government
"investment" in the economy, free market economists understand the
problem perfectly well. In short, they understand that we are looking
to the Federal Reserve to solve an unemployment crisis that the Fed
itself largely created.

For example, the Fed is supposed to maintain full employment as half
of its "dual mandate". But the Fed simply has the wrong tools to do
this. In fact, its credit expansion and manipulation of interest rates
cause harm when they are applied to "help" the economy. As we saw with
the housing boom and bust, Fed-created inflation cannot be sustained
without harmful consequences. The Fed's artificial boom led to the
unemployment we're suffering today. The Fed is not a small business or a
manufacturer that creates value or increases productivity to sustain
real job growth. It literally destroys value by printing more money,
and distributing it through sweetheart deals to well connected banks and
corporations (including foreign banks!). The only success the Fed has
had in maintaining full employment has been on Wall Street where it
props up crony banks and investment houses to prevent them from going
bankrupt as they should. Instead, they survive to malinvest another day
while their executives enjoy jackpot bonuses.